@article{Exchange:674,
      recid = {674},
      author = {Amano, Robert and van Norden, Simon},
      title = {Terms of Trade and Real Exchange Rates: The Canadian  Evidence},
      publisher = {Bank of Canada},
      address = {1993},
      pages = {1 online resource (v, 38 pages)},
      abstract = {This paper presents empirical evidence linking the  Canada-U.S. real exchange rate with terms-of-trade  variables. Using recently developed econometric methods for  nonstationary data, we find that the real exchange rate is  cointegrated with terms-of-trade variables, and that  causality runs from the terms of trade to the exchange  rate. We then construct a simple exchange rate equation  that satisfies several specification tests and performs  better than a random walk in post-sample forecasting  experiments. The results suggest that much of the variation  in the real exchange rate is attributable to movements in  the terms of trade and that the influence of monetary  factors is secondary.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/674},
      doi = {https://doi.org/10.34989/swp-1993-3},
}